Special Economic Zones in Pakistan: A Qualitative Analysis of the Special Economic Zones Act of 2012

Abstract

Special Economic Zones (SEZs) are considered a high-yielding strategy for the rapid development of any country due to the success stories of some countries, like China. In the twenty-first century, many developing countries adopted the SEZs policy for quick economic growth. Pakistan is one of them. In SEZs, governments provide various incentives to businessmen and investors that attract Foreign Direct Investment (FDI), enhance the country’s revenues, help with technology, and also upgrade skills. Pakistan, a developing country in South Asia, adopted the policy of SEZs to develop its economy effectively and paved the way for its fast economic development in 2012. The act is named “SEZ Act of 2012." However, this act has been amended many times according to the requirements of the economy; therefore, the later versions have also been used in this study for detailed analysis. This study focuses on analyzing the SEZs Act of 2012. It particularly focuses on the roles and responsibilities of the various institutions that helped the developers, investors, and the federal and provincial governments establish SEZs and effectively implement SEZ regulations in Pakistan. This study qualitatively analyses the subject under discussion based on the previously available literature. The first section of the study describes the importance of SEZs as a successful policy tool for development by briefly explaining examples from various countries. The second portion explains the details of the SEZ Act of 2012, like institutions their roles, functions, and limits. Finally, the third part defines the later versions of this act to be made to meet the requirements of time.